5 Benefits of Co-Owning a Holiday Home in Australia

The dream of owning a holiday home in Australia’s beautiful coastal or countryside locations may seem out of reach for many, but co-ownership is changing that. 

Through co-ownership thousands of people in the U.S. and in Europe are purchasing a share of a property with other like-minded individuals to enjoy all the perks of owning a holiday home without the full financial burden and management responsibilities. 

With Faction now offering this in Australia we thought we’d highlight some of the perks of not going it alone! 

Here are five key benefits of co-owning a holiday home.

1.Affordability:
One of the biggest advantages of co-owning a holiday home is the affordability. Rather than shouldering the cost of buying a property outright, co-ownership allows you to purchase a fraction of the home. For example, if you buy one-eighth of a home, you only pay for one-eighth of the cost, and you have access to the property for 44 days per year. This model allows you to enjoy a holiday property in a prime location and it frees up capital for other investments or lifestyle choices. There are a few co-ownership options in Australia. You can work with Faction who divide their homes into 1/8th shares or 1/6th shares. 

2. Reduced Maintenance:
Maintaining a holiday home can be expensive and time-consuming. Co-ownership reduces these burdens by splitting the costs of repairs, upkeep, and regular maintenance between all owners. 

When working with Faction, the property is fully managed by a professional service, so you won’t need to worry about mowing the lawn, fixing broken appliances, or handling emergency repairs. This hassle-free experience allows you to focus on enjoying your property when you visit, instead of dealing with the day-to-day responsibilities of maintaining a second home.

3. Flexible Usage:
Co-ownership doesn’t mean you’re limited to a small window of time to use your property. Many co-ownership models allow you to schedule your stays throughout the year, offering flexibility to plan your holidays during off-peak times or around your personal calendar. Some companies also offer apps or digital tools to make the booking process seamless, so you can easily arrange your time at the property without clashing with other owners. This flexibility makes it easy to enjoy spontaneous getaways or long-planned vacations without worrying about availability.

4. Potential Investment Returns:
A holiday home is not just a place to relax—but other co-ownership platforms overseas (like Pacaso) boast an average of a 10% return when people re-sell their shares. As a co-owner, you can benefit from any increase in the property’s value, as you own the underlying asset. Additionally, some co-ownership models allow you to rent out your share of the property when you're not using it. 

5. Stress-Free Management:
Many co-ownership models include comprehensive property management services, which handle everything from routine maintenance to cleaning before and after your stay. These services take the stress out of managing a second home, ensuring that the property is always in top condition without you having to lift a finger. This hands-off approach allows you to enjoy the luxury of a holiday home without the associated headaches of being a full-time owner, making it an ideal option for those who want the benefits of ownership without the time commitment.

Co-owning a holiday home in Australia could offer a cost-effective, low-maintenance, and flexible way to enjoy some of the country’s most sought-after locations. By sharing the financial and logistical responsibilities with other owners, a person can experience the dream of owning a luxury holiday home while potentially benefiting from potential investment returns and stress-free management. 

To learn more about co-owning a home visit our learning center https://www.joinfaction.com/learn

Charlotte Crivelli

Charlotte has two decades of experience in venture building and innovation labs in the US and Australia, specialising in PropTech ventures. She has collaborated with leading companies such as BPay, ANZ, LendLease, and Boston Consulting Group to bring these PropTech ventures to market. Her diverse background combines strategic insight with a passion for co-ownership models and property investment.

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